BrightSphere Investment Group Inc. (NYSE:BSIG) Q2 2024 Earnings Conference Call August 1, 2024 11:00 AM ET

Company Participants

Melody Huang - Senior Vice President, Director of Finance and Investor Relations
Suren Rana - President and Chief Executive Officer

Conference Call Participants

Michael Cyprys - Morgan Stanley
Kenneth Lee - RBC Capital Markets
John Dunn - Evercore ISI

Operator

Welcome to the BrightSphere Investment Group Earnings Conference Call and Webcast for the Second Quarter 2024. During the call, all participants will be in a listen-only mode. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] Please note that this call is being recorded today, Thursday, August 1, 2024, at 11:00 a.m. Eastern Time.

I would now like to turn the call over to Melody Huang, Senior Vice President Director of Finance and Investor Relations. Please go ahead, Melody.

Melody Huang

Good morning. And welcome to BrightSphere's Conference Call to discuss our results for the second quarter ended June 30, 2024.

Before we get started, please note that we may make forward-looking statements about our business and financial performance. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected. Additional information regarding these risks and uncertainties appears in our SEC filings, including the Form 8-K filed today containing the earnings release, our 2023 Form 10-K, and our Form 10-Q for the first quarter of 2024. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update them as a result of new information or future events.

We may also reference certain non-GAAP financial measures. Information about any non-GAAP measures referenced, including a reconciliation of those measures to GAAP measures, can be found on our Web site, along with the slide deck we will use as part of today's discussion.

Finally, nothing herein shall be deemed to be an offer of solicitation to buy any investment products. Suren Rana, our President and Chief Executive Officer, will lead the call.

And now, I'm pleased to turn the call over to Suren.

Suren Rana

Thank you, Melody. Good morning, everyone, and thanks for joining us today. I'll cover some of the main highlights on slide five of the deck in my initial remarks, and then I can answer any questions.

So, for the second quarter of 2024, we reported ENI per share of $0.45, compared to $0.28 in the second quarter of 2023, and $0.44 in the first quarter of 2024. The 61% increase in ENI per share compared to the year-ago quarter was primarily driven by increase in management fee revenue due to higher AUM from the market appreciation that we saw over the last 12 months. And secondly, it was also driven by our share repurchases over the last few quarters. Our average AUM increased approximately 13% compared to the second quarter of 2023. And management fee revenue increased 14%, in line with the AUM increase. However, since we were able to keep our operating expenses generally flat year-over-year, our ENI increased 43% because of the 14% increase in revenue.